| Abstract: | A higher diesel demand growth-rate relative to that of petrol could lead to an increasing imbalance between supply and demand ratios which is aggravated by the production of more coalbased petrol, if timeous action is not taken to change this tendency. Options include manpulation of demand by the adoption of an alternative pricing policy with due regard to price elasticities, the extension of diesel volumes by naphta-blending and the subsitution of diesel using cethane-improved methanol. The development of the synthetic fuels industry is discussed, and it is reasoned that in choosing a suitable coal conversion technology, consideration has to be given to projected relative fuel demands, the technology risk associated with using commercially unproven processes, the need to develop an assured market in the case of unconventional fuel, the high capital costs involved and consequently the requirements for State assistance. Graph., tab. |
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